Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its May 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings decreased by 3.74% last month representing 31,314 cases 32,508 filings of all types, down from the 32,508 filings seen in May, 36,059 seen in March, the 26,985 seen in February, and 26,149 seen in January.
“The bankruptcy market continues to navigate uncharted waters as the effect of the global pandemic lingers and uncertainty around the U.S. public markets enters the mix,” says Chris Kruse, senior vice president at Epiq. “If the economy declines, the bankruptcy market will likely become more active.”
The 31,314 filings last month represent a 10% decrease year over year when compared to the 34,783 seen in May 2021.
In addition, May’s commercial chapter 11 filings increased 32% from the 250 filings in April 2022. The commercial filing total represented a 2% decrease from the April 2022 commercial filing total of 1,775. Subchapter V elections within chapter 11 increased 23% from the 100 filed in April 2022. May’s total bankruptcy filings represented a 4% decrease when compared to the 32,518 total filings recorded the previous month. Total noncommercial filings for May also represented a 4% decrease from the April 2022 noncommercial filing total of 30,743.
The largest jump seen among bankruptcy data was a 34% increase in commercial chapter 11 filings to 330 cases. Overall commercial filings decreased 4% in May 2022, as the 1,738 filings were down from the 1,813 commercial filings registered in May 2021.
“Rising interest rates, inflationary price increases and global supply concerns are compounding the economic challenges for financially distressed families and businesses,” said Amy Quackenboss the ABI Executive Director. “Legislation currently being considered in the House would expand the debt-eligibility limits for small businesses and individuals that would create greater access and a more efficient process for families and businesses looking for a financial fresh start.”